CUET Preparation Today
Which of the following represents a consumers budget constraint? |
p1x1 + p2x2 ≥M p1x1 + p2x2 = M p1x1 + p2x2 ≤ M p1x1 + p2x2 <M |
p1x1 + p2x2 ≤ M |
Given the prices of the goods and the income of a consumer, he/she can choose any bundle as long as it costs less than or equal to the income he/she has. In other words, the consumer can buy any bundle (x1, x2) such that p1x1 + p2x2 ≤ M |
